The trading volume of the first cryptocurrency on centralized platforms in August amounted to the lowest since October 2020 $423 billion. Such calculations led Bitfinex analysts to report.
According to experts, this signals a “fall in confidence in bitcoin and the wider crypto asset sector.”
The low liquidity environment makes the digital asset market susceptible to significant price fluctuations even with modest trading volume, the experts stressed.
The driving force was the derivatives market, the turnover of which at the moment turned out to be 20 times higher than spot values by CEX.
Analysts noted the increased pessimism among investors and the need for a new catalyst to restore the positive environment.
They noted that the news around the position SEC regarding ETFs began to have a “less pronounced impact on market prices”, while macroeconomic data from the US began to cause a more sensitive reaction.
The total volume of trading on cryptocurrency exchanges in April-June fell to a minimum since the fourth quarter of 2020, according to Kaiko.
Source: Cryptocurrency
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